A positive client experience extends beyond relationships—it’s about making legal processes, from client intake to case closing, easier and more manageable for the people you serve. One way your law firm can improve the client experience is by offering flexible, inclusive lawyer payment methods.

Due to complex ethical concerns, many law firms hesitate to adopt new technology, particularly when it involves client funds. Fortunately, legal billing software is designed to help lawyers adapt to shifting client payment preferences while guaranteeing compliance with federal and state bar regulations. 

While not all payment methods are right for every law firm, there are a few common payment options that all law firms should adopt to benefit clients and their businesses. Offering multiple payment methods streamlines billing and collections, boosts profitability, improves retention, and gives potential clients the resources and support they need when retaining your firm’s services.

5 Payment Methods to Benefit Your Clients

A successful law firm must have streamlined and transparent billing practices. Although today’s technology offers many possible payment options for law firms, not all options will be the best fit for all firms. 

Additionally, finding a solution that integrates with your processes and systems (such as practice management or accounting software) allows you to accept multiple lawyer payment methods and enhance financial management from one place.

1. Credit Card Payments 

According to a Forbes study, over 70% of consumers prefer businesses that accept card transactions.  

But do lawyers take credit cards? Although law firms have historically been slow to adapt to this trend, the American Bar Association approved credit card payments as acceptable for payment of attorney fees and legal services back in 1974. In addition, technology has advanced to make accepting credit cards safe, simple, and seamless. 

Allowing invoice payments via credit card improves the quality of your client service. Credit card payments make paying bills fast and convenient for clients, especially when online payment options are available instantly from anywhere.

Accepting credit card payments has business benefits for law firms, too. Bills paid by credit card are paid 39% faster, which means your firm has access to payments owed without time-consuming collection efforts. Credit card payments also reduce the administrative time and overhead costs associated with traditional billing, like manually entering paid invoices into an accounting system or paying for postage.

What about when dealing with trust accounts? Luckily, legal-specific payment processors alleviate the challenges of accepting credit card payments. They are designed to help law firms accept credit card payments with peace of mind. Legal payment processors allow funds to be deposited in one account, and fees are withdrawn from another. Additionally, legal payment processors ensure processing fees are charged to the attorney’s accounts, not the client’s.

2. Debit Card Payments 

Like credit card payments, debit card payments allow clients to pay bills quickly, easily, and with nominal inconvenience or cost to law firms. Debit card payments are ideal for clients who have enough money to pay a legal invoice immediately but want to do so quickly and conveniently. Additionally, allowing debit card payments helps clients avoid interest charges. 

The challenges of law firm payment processing via debit card are similar to those for credit cards. Fees to use debit cards must be applied to the law firm, not to the client, and charges cannot be withdrawn from client accounts until they are incurred. The tools used by legal payment processors allow law firms to accept debit card payments worry-free. 

3. ACH Payments  

ACH payments, or “automated clearing house payments,” are a form of eCheck. This lawyer payment option directly deposits funds from a client’s bank account to a law firm account without a third-party intermediary like a credit card processor. ACH payments combine the convenience of paying by credit card with the functionality and simplicity of paying via check—all without credit card processing fees. 

Similar to payments made by card, ACH payments must be handled carefully. Once again, using a legal-specific payment processor like CosmoLexPay allows law firms to navigate legal regulations with ease. 

4. Payment Plans

Payment plans reduce large legal bills to manageable amounts, alleviating the financial burden for clients and making services more accessible. This helps your firm appeal to more clients, increase collection rates, and boost profitability.

One thing to be aware of when offering payment plans or fee arrangements is that you may be relying on payments that have not yet been received when managing your firm’s finances. 

5. Legal Fee Funding

Legal fee funding is similar to a payment plan for clients; however, the key difference is that law firms get the full payment upfront. There are a couple of different ways legal fee funding can work.

One common approach is through third-party-managed “Buy Now, Pay Later” (BNPL) services for legal fees, allowing clients to pay in installments over time. Another option involves personal loans from private lenders specifically intended for legal expenses.

When a third-party processor manages the financing, the law firm receives payment upfront, leaving the client to handle repayment directly with the provider. So, for law firms, legal fee funding minimizes non-payment risk and reduces the need to manage client payments. On the downside, law firms typically pay a processing fee to the third party, which impacts profits. Legal fee funding can also be difficult for some clients since they can face additional interest and fees, mainly if payments are late. 

Create a Reliable and Efficient Lawyer Payment Experience with CosmoLex

With versatile and digital payments becoming the standard across industries, managing transactions efficiently directly impacts your client relationships and your firm’s cash flow.

Offering multiple secure legal payment methods—from credit cards and debit cards to ACH transfers, payment plans, and legal fee funding—enhances the client experience. A positive payment experience improves client satisfaction and boosts your firm’s reputation and referral rates​​. 

CosmoLex offers users safe, secure payment options for clients with CosmoLexPay. CosmoLexPay protects client information with bank-grade security standards, giving clients the peace of mind that their personal information is always kept private. Plus, CosmoLexPay’s native trust accounting features keep your practice secure and audit-ready. 

Using this built-in feature with CosmoLex’s practice management software, your law firm can optimize billing and accounting for the most efficient matter management. To try CosmoLex, schedule a demo or register for a free trial.